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3 Slides Investors Should See From EC World Real Estate Investment Trust’s Latest Results

Credit: Lali Masriera

EC World Real Estate Investment Trust (SGX: BWCU) is the first China-focused logistics REIT in Singapore’s stock market. It was listed in July 2016 and owns six properties in China that are mainly used for e-commerce, supply-chain management, and logistics purposes.

In early August, the REIT released its 2017 second quarter results. EC World REIT had prepared a presentation for its earnings announcement. Within the deck of slides are three that contain key information about the REIT’s business that I think investors should see. Here are the crucial information from the slides.

Property portfolio

One of the slides contained a table showing details on EC World REIT’s property portfolio. Here’s the table:


Source:
EC World REIT2017 second quarter earnings presentation

It’s interesting to note that the REIT has both master leases as well as multi-tenanted properties.

Revenue and net property income breakdown

Below you can find a breakdown of EC World REIT’s gross revenue and net property income (NPI) by property in the second quarter of 2017:


Source:
EC World REIT2017 second quarter earnings presentation

What’s useful to know is that EC World REIT’s revenue and NPI are well-diversified. The REIT’s largest property, Chongxian Port Investment, accounted for only 33.2% and 35.5%, respectively, of total gross revenue and NPI.

Lease expiry profile

The lease expiry profile of a REIT is important to study because it gives us a sense of the stability of the REIT’s income. The chart below on EC World REIT’s lease expiry profile was given in one of the slides:


Source:
EC World REIT2017 second quarter earnings presentation

It turns out that EC World REIT has a  weighted average lease expiry of 3.5 years.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.